US to exclude South Africa and Rwanda from Agoa duty-free deal

The United States has announced it will exclude South Africa and Rwanda from the Africa-US African Growth and Opportunity Act (Agoa) duty-free trade deal, effective from January 1. This decision comes after the US trade representative, Jamieson Greer, cited practices deemed "inconsistent" with Agoa eligibility criteria, including barriers that jeopardize American trade and investment, as well as actions threatening US national security and foreign policy interests in the region.

Agoa, which grants sub-Saharan African countries preferential access to the US market, is up for renewal until the end of 2028, but undergoes annual reviews. South Africa, the program's largest beneficiary, faces scrutiny as Washington intensifies criticism of the country, including false allegations of discrimination against white Afrikaners that Pretoria rejects.

The Citrus Growers' Association of Southern Africa (CGA) described the exclusion as a "serious blow" to the industry, warning of potential job losses and economic repercussions for entire towns, as the country is the second-largest citrus exporter globally and has the largest agricultural export sector by value. South Africa's trade minister expressed hope for a favorable US decision, while President Cyril Ramaphosa prepared for an adverse outcome.

The US president reviews Agoa eligibility annually, with removal requiring a 60-day notice to Congress and the affected country. Meanwhile, the US has also imposed sanctions on the Rwandan defense ministry over ties to the M23 rebel group in the Democratic Republic of Congo, a move Rwanda denies.